Sensex up 2500 pts,Nifty up 3% in 2sessions: Should you book

An analyst said investors should remain invested instead of rushing to book profits as the Nifty has reclaimed the 24,000 mark.

The benchmark indices Sensex and Nifty opened with strong gains on Monday amid optimism over a US-Iran peace deal, but gave up a part of their gains due to profit booking during the session.

Extending gains for the second straight session, the Nifty climbed 231 points or 0.98 percent to settle at 23,853.90. During the day, it rallied 388.5 points or 1.64 percent to hit 24,011.40.

The Sensex jumped 736.38 points or 0.97 percent to close at 76,264.33. In intra-day trade, it surged 1,293.12 points or 1.71 percent to 76,821.07.

In the previous session on Friday, the Sensex had rallied 1,695 points or 2.3 percent, while the Nifty gained 461 points or nearly 2 percent.

In the last two sessions, the Sensex has gained nearly 2,500 points, while the Nifty has risen nearly 3 per cent.

Sanjeev Hota, Director and Head of Equities Strategy at SCSI, said investors should remain invested instead of rushing to book profits as the Nifty has reclaimed the 24,000 mark.

“For those who have remained on the sidelines, current levels still offer a reasonable opportunity to gradually increase allocations towards equities. While markets have rebounded sharply, valuations are becoming more attractive relative to the improving earnings outlook, particularly in large caps and some segments of the broader market where corporate results have continued to surprise positively,” he said.

Hota said mid- and small-cap companies have delivered stronger-than-expected earnings growth, indicating that the recovery is broadening beyond a handful of large-cap stocks.

He added that the near-term macro environment is also turning supportive, with geopolitical risks easing, the rupee stabilising and expectations of an earnings recovery potentially reviving foreign institutional investor flows.

“While concerns around El Niño and its potential impact on monsoon-driven demand remain key monitorables, India’s macro fundamentals continue to exhibit resilience despite global uncertainties,” he said.

Nishchal Jain, Quant Researcher at Share.Market by PhonePe, said the sharp rise in the Sensex and the Nifty’s move above the 24,000 level has improved the market’s technical outlook.

He said the Nifty has moved above its 20-day and 50-day exponential moving averages, shifting the short-term market bias back to “buy on dips”.

Jain said the sharp fall in India VIX indicates that market panic has eased, though momentum indicators suggest a temporary pause or consolidation could be seen.

“For tactical traders, this warrants partial profit-booking or maintaining tight trailing stops around the 23,900 mark to protect gains. However, long-term investors should stay put as the primary bull market trend remains intact,” he said.

According to Jain, the 23,800 level is likely to act as a key support zone for the market.

On Bank Nifty, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the index continues to trade above all its key moving averages, reflecting the strength of the prevailing uptrend.

“The zone of 57,700-57,800 is likely to act as an immediate hurdle for the index. A decisive move above 57,800 could trigger fresh buying and pave the way for an upside rally towards the 58,500 level in the short term,” he said.

On the downside, the 56,800-56,700 zone remains a crucial support area and holding above this range will be important to maintain the positive bias, Shah added.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

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